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AB-1697 Personal income taxes: credit: still birth.(2021-2022)



Current Version: 03/31/22 - Amended Assembly

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AB1697:v97#DOCUMENT

Amended  IN  Assembly  March 31, 2022
Amended  IN  Assembly  March 10, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1697

Introduced by Assembly Members Patterson and Gallagher

January 25, 2022

An act to add and repeal Section 17054.3 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1697, as amended, Patterson. Personal income taxes: credit: still birth.
The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit for a personal exemption for dependents.
This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit against those taxes to a taxpayer who holds a Certificate of Still Birth for the unreimbursed medical and burial or cremation costs costs, not to exceed $2,000 per certificate, paid or incurred, and were not, or will not, be reimbursed by any other source, not to exceed $2,000, incurred during the taxable year in which the still birth occurred or within the first 6 months of the next taxable year, as provided.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17054.3 is added to the Revenue and Taxation Code, to read:

17054.3.
 (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed to a taxpayer who holds a Certificate of Still Birth a credit against the “net tax,” as defined in Section 17039, for qualified expenses, not to exceed two thousand dollars ($2,000). ($2,000) per Certificate of Still Birth.
(b) For purposes of this section, “qualified expenses” means any of the following costs paid or incurred by the taxpayer during the taxable year in which the still birth occurred, or within the first six months of the next taxable year, that are directly related to the still birth and were not, or will not, be reimbursed by any other source:
(1) Medical costs.
(2) Burial or cremation costs.
(c) In the case of spouses who file separate returns, the credit allowed by this part may only be taken by one spouse.

(c)

(d) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.
(e) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section.

(d)

(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.

SEC. 2.

 For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Section 17054.3 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:
(a) The specific goal, purpose, and objective that the credit will achieve is to provide financial relief to families to assist with health care, burial, and autopsy costs associated with a stillbirth. Many of these families paid for cribs, diapers, and other essential costs for the baby and now have to shoulder the unexpected health care, burial, and autopsy costs after the baby dies.
(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goal, purpose, and objective described in subdivision (a) is the number of taxpayers who utilized the credits and the total dollar amount of credits claimed.
(c) (1) The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, on or before January 1, 2026, May 1, 2027, and in compliance with Section 9795 of the Government Code, to the Legislature.
(2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.